Agilysys (NASDAQ:AGYS) Posts Earnings Results

Agilysys (NASDAQ:AGYS) released its quarterly earnings results on Monday. The software maker reported $0.42 EPS for the quarter, missing analysts’ consensus estimates of $0.46 by ($0.04), FiscalAI reports. Agilysys had a return on equity of 11.01% and a net margin of 9.79%.The business had revenue of $80.39 million for the quarter, compared to the consensus estimate of $79.07 million. During the same quarter last year, the company earned $0.38 earnings per share. The firm’s revenue was up 15.6% on a year-over-year basis.

Here are the key takeaways from Agilysys’ conference call:

• Raised guidance — management increased full-year revenue guidance to $318 million and reaffirmed 29% subscription revenue growth and a 20% adjusted EBITDA target, signaling confidence in continued top-line and profitability expansion.
• Record Q3 results and SaaS momentum — revenue hit a record $80.4M (16th consecutive record quarter), recurring revenue was $52M (64.7% of total) and subscription revenue was a record $34.9M (up 23.1% YoY), showing sustained subscription growth.
• Improving implementations and cash flow — professional services revenue rose 22% to $17.7M, services backlog declined, and free cash flow was $22.7M, reflecting faster conversion of bookings to revenue and stronger operational visibility.
• Marriott PMS rollout progressing — pilot implementations completed and larger implementation waves are starting; the project is excluded from current backlog/guidance but is positioned as a significant future growth catalyst.
• Near-term margin and comp headwinds — gross margin dipped slightly to 62.5% due to one-time revenue mix and ramping services headcount, and management said Book4Time acquisition comps will temper implied Q4 subscription growth, which could constrain near-term margin expansion.

Agilysys Price Performance

Shares of NASDAQ AGYS opened at $90.86 on Wednesday. Agilysys has a 1 year low of $63.71 and a 1 year high of $145.25. The company has a 50-day moving average price of $119.24 and a 200-day moving average price of $115.27. The stock has a market capitalization of $2.55 billion, a P/E ratio of 84.92 and a beta of 0.43.

Key Headlines Impacting Agilysys

Here are the key news stories impacting Agilysys this week:

• Positive Sentiment: Needham reaffirmed a “buy” rating and a $140 price target, signaling analyst confidence and highlighting significant upside from current levels. Article Title
• Positive Sentiment: Seeking Alpha published an upgrade calling the post-earnings drop a “healthy dip to buy,” noting AGYS is diversifying beyond hotels (cruise, casinos, foodservice) and that roughly two-thirds of revenue is recurring and sticky — a structural positive for long-term cash flow. Agilysis: A Healthy Dip To Buy (Upgrade)
• Positive Sentiment: The company reported its 16th consecutive record revenue quarter: $80.4M, up 15.6% year-over-year, with recurring revenue contributing meaningfully — evidence of demand and recurring contract strength. Press Release
• Neutral Sentiment: Full earnings call transcript and company commentary are available for investors to parse for guidance detail and management tone; listening may clarify subscription-sales cadence and near-term guidance. Earnings Call Transcript
• Neutral Sentiment: Analyst write-ups (Zacks) note revenue beat vs. consensus but emphasize the EPS miss — useful context for modeling near-term margins and cadence. AGYS Reports Q3 Earnings
• Neutral Sentiment: Reported short-interest data for the period appears to be erroneous/unavailable (shows 0 shares and NaN change), so short-squeeze dynamics are unclear from the published data.
• Negative Sentiment: Non-GAAP EPS missed consensus ($0.42 vs. $0.46), which likely triggered near-term selling despite the revenue beat. Earnings Miss
• Negative Sentiment: MarketWatch flagged management commentary / outlook that investors interpreted as implying a slowdown in subscription sales growth — this guidance concern is the primary driver of the sell-off. Outlook Story
• Negative Sentiment: Reports show unusually high trading volume during the decline, indicating heavy selling pressure as investors reacted to the EPS miss and cautious outlook. Stock Falls After Q3 Earnings Miss

Insiders Place Their Bets

In other news, SVP Kyle C. Badger sold 502 shares of the firm’s stock in a transaction on Monday, November 3rd. The stock was sold at an average price of $124.64, for a total transaction of $62,569.28. Following the completion of the sale, the senior vice president directly owned 114,911 shares of the company’s stock, valued at $14,322,507.04. This trade represents a 0.43% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Sethuram Shivashankar sold 497 shares of the business’s stock in a transaction dated Monday, November 3rd. The shares were sold at an average price of $124.64, for a total transaction of $61,946.08. Following the completion of the transaction, the insider owned 24,031 shares in the company, valued at approximately $2,995,223.84. The trade was a 2.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 9,576 shares of company stock worth $1,189,070 in the last ninety days. 8.60% of the stock is owned by corporate insiders.

Institutional Trading of Agilysys

A number of institutional investors have recently modified their holdings of AGYS. CIBC Bancorp USA Inc. purchased a new position in shares of Agilysys during the third quarter valued at approximately $290,000. NewEdge Advisors LLC grew its holdings in shares of Agilysys by 37.3% in the third quarter. NewEdge Advisors LLC now owns 3,777 shares of the software maker’s stock worth $398,000 after acquiring an additional 1,027 shares during the period. CANADA LIFE ASSURANCE Co increased its stake in shares of Agilysys by 169.0% in the third quarter. CANADA LIFE ASSURANCE Co now owns 60,945 shares of the software maker’s stock worth $6,321,000 after purchasing an additional 38,288 shares in the last quarter. Woodline Partners LP increased its stake in Agilysys by 8.7% in the 3rd quarter. Woodline Partners LP now owns 3,335 shares of the software maker’s stock worth $351,000 after buying an additional 267 shares in the last quarter. Finally, Dark Forest Capital Management LP bought a new stake in Agilysys during the 3rd quarter valued at approximately $394,000. 88.00% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities research analysts have commented on the stock. BTIG Research initiated coverage on shares of Agilysys in a research note on Tuesday, December 16th. They issued a “neutral” rating for the company. Needham & Company LLC restated a “buy” rating and issued a $140.00 price objective on shares of Agilysys in a report on Tuesday. Oppenheimer raised their target price on shares of Agilysys from $130.00 to $140.00 and gave the company an “outperform” rating in a research note on Thursday, December 4th. Cantor Fitzgerald restated an “overweight” rating and issued a $140.00 price objective on shares of Agilysys in a research note on Tuesday, October 28th. Finally, UBS Group reaffirmed a “buy” rating on shares of Agilysys in a report on Monday, December 15th. Four research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $145.40.

Agilysys Company Profile

Agilysys, Inc is a publicly traded technology company (NASDAQ: AGYS) that specializes in providing software and services to the hospitality industry. The company’s solutions span property management, point-of-sale, inventory and procurement, workforce management, analytics and mobile guest engagement. These offerings are designed to streamline hotel and resort operations, enhance guest experiences and improve financial performance for clients across the lodging, gaming, cruise, senior living and higher-education markets.

Agilysys delivers its portfolio through both cloud-based and on-premises deployments, enabling hoteliers and hospitality operators to select the infrastructure model that best aligns with their operational requirements and IT strategies.